The Parliament is drafting a new Law "On the fight against the legalisation of property obtained through crime and the financing of terrorism."
What has the Parliament proposed?
According to the draft law, any religious institution, non-governmental organisation, including the branch or representative office of a foreign non-governmental organisation in Azerbaijan, which receives, collects, gives or transfers funds:
- must have rules and procedures aimed at minimizing terrorist financing risks, and
- prepare a detailed annual financial report on grants and donations, as well as their use. The financial report must be submitted to the supervisory authority no later than April 1 of each year.
New amendments to the Code of Administrative Offence introduce penalties for organisations violating these rules.
Risk-based approach needed
Such measures might have potential negative consequences for CSOs’ operation in Azerbaijan when disproportionately applied and if compliance is expected from all CSOs. Without considering a risk-based approach, which determines which CSOs are at actual risk, they can easily discourage or disrupt legitimate CSO activities.
To download the brief legal analysis of the proposal, click here.